MARTIN MAWAYA
HARARE-Nyaradzo Life Assurance Company has consolidated its dominance of Zimbabwe’s life assurance sector, commanding a 39.27% market share on the back of surging demand for funeral cover, as industry revenue jumped 39% to about US$172 million as at September 30, 2025.
Data from the Insurance and Pensions Commission (IPEC) show that the funeral assurance giant continued to outpace rivals in a market increasingly shaped by short-term insurance products, particularly funeral and group life policies, which now account for more than four-fifths of sector revenue.
In its Life Assurance Sector Report as at September 30, 2025, IPEC said overall insurance revenue rose to ZiG$4.59 billion, equivalent to approximately US$172.05 million, from US$123.77 million recorded during the same period last year.
“Funeral assurance remains the main driver of the life assurance sector, representing 68.04% of total revenue, while group life assurance contributed 14.27%,” IPEC said, underscoring the product mix that has entrenched Nyaradzo’s market leadership.
The sector comprises 12 registered life insurers supported by 1 760 agents, a marginal increase from the previous quarter, pointing to slow but steady expansion in distribution networks.
Despite the strong topline growth, IPEC flagged emerging risks as foreign currency denominated revenue declined to 55% of total income from 62% in the prior period, largely due to relative exchange rate stability.
The regulator also warned that Heritage Life and Nhaka Life failed to submit mandatory foreign currency returns, exposing them to possible sanctions.
The dominance of funeral and group life assurance has continued to erode the market share of traditional long-term life products.
Credit assurance accounted for 7.90% of total revenue, followed by short term insurance at 4.35% and other life products at 4.3%, while endowment and whole life policies remained negligible.
IPEC further noted a structural shift towards renewable annual policies, particularly in funeral and group life assurance, raising concerns about policyholder protection and compliance with the Funeral Directive.
“A notable trend in the life insurance industry is the shift from traditional long-term products towards predominantly renewable annual policies,” the commission said, urging insurers to strictly comply with regulatory requirements.
Market concentration remained high, with the top five insurers accounting for 84% of total sector revenue, or approximately US$144.33 million.
This resulted in a Herfindahl-Hirschman Index of 2 184.10, indicating a moderately concentrated market dominated by a few large players.
IPEC said while the sector has shown resilience amid economic pressures, sustained regulatory oversight remains critical to ensure balanced growth, fair competition and adequate consumer protection.
